Despite a relatively quiet week, the situation on the Dutch manure market remains tense, with the DCA manure quotation remaining at a stable high. Arable farmers with storage capacity are increasingly inquiring about manure again. Interest in the trade in Substitute Processing Agreements (SPAs) is also increasing as we approach the end of the year.
The hoped-for decrease in manure disposal costs for livestock farmers is not yet materializing. In various regions in the eastern and southern Netherlands, collection fees are actually still slowly rising, according to DCA quotations. According to intermediaries, the supply of cattle manure continues to flow well, but the situation is different for pig manure. Pig farmers are currently still reluctant to dispose of manure, which is why the quotations are also taking a small step down this week.
Competition in the utilization of storage space
While the manure market in the south of the country has been quieter recently than in the east, the price of cattle manure there is also clearly rising this week. This is mainly due to the fact that several parties are offering higher prices for the use of storage space. Manure traders who want to maintain their position in these storage facilities must accommodate these increases, costs that are then passed on in the manure price.
Arable farmers are reporting to the manure market
Arable farmers with available storage space are also re-entering the market more frequently, according to various parties. At this stage, however, interest in the amounts they can receive often remains exploratory. These are typically between €20 and €30 per cubic meter, with the upper end of the market only achievable if transport distances between the livestock farmer and the storage location remain limited. Market information suggests that, particularly in the north of the country, amounts of around €25 per cubic meter are currently being paid to arable farmers.
According to intermediaries, there is still considerable work to be done in the coming weeks leading up to the new year. The storage areas will continue to be filled, while several livestock farmers still have to dispose of their remaining manure this year. Significant decreases in manure disposal costs are unlikely towards the end of the year and are also not historically common, as the intermediaries emphasize.
Interest in VVOs is becoming noticeable
As winter approaches, interest in trading VVOs is also increasing. The DCA price this week is €1,50. While there are currently a lot of inquiries, there are hardly any actual transactions. December is traditionally the month when trading volume picks up. Nevertheless, insiders indicate that it's questionable whether livestock farmers are wise to wait so long for market developments. Consequently, interest among traders is already noticeable, causing slight shifts in the weekly price.